STOCK MARKETS — Toronto composite index climbs despite dismal week for golds — Base metals suffer as juniors regain lost ground; Loony down against greenback

Riding on the back of the transportation and environmental sub-group, the Toronto Stock Exchange 300 composite index rose for a second consecutive week to close the report period ended April 29 at 5,903.56, a gain of 48.19 points.

The TSE gold and precious metals sub-group, however, suffered a major setback, plummeting 245.75 points, or 2.7%, to land at 8,773.47. That setback was not reflected in the price of gold bullion. The yellow metal was down only 25 cents from last week, with the London Metal Exchange morning fix set at US$340 per oz. on April 30. Silver was down 6 cents to US$4.66 per oz., while platinum was off 75 cents to US$374.25 per oz.

Despite the drop in the gold market, issues related to the Busang saga emerged not only unscathed but ahead. Bre-X Minerals was once again the most actively traded issue, with 51.9 million shares changing hands. The issue climbed $1.40 over the report period, to close at $3.80.

Shares of parent company Bresea Resources were the third most heavily traded, at 8.8 million. The issue was up 55 cents, finishing at $1.65. Gaining an equivalent amount was Minorca Resources, a minority stake-holder in Busang.

That issue closed at $2.05.

Senior and mid-tier gold companies did not fare as well as their junior counterparts. Euro-Nevada suffered the greatest loss, dropping $4.25 to $38, whereas Barrick Gold fell $1.05, to $31.20. TVX Gold shed 80 cents, finishing at $7.75, Bema Gold lost 50 cents to close at $9.75, and Kinross Gold dropped 75 cents to $7.45.

The news was just as bad in the base metal market. The TSE’s metals and minerals sub-group fell 50.74 points, or 0.97%, to finish the week at 5,163.26. With the exception of zinc, all base metals decreased in value on the London Metal Exchange. On the morning of April 30, copper was selling at US$1.09 per lb., for a loss of 4 cents. Nickel was down 3 cents to US$3.28 per lb., whereas lead lost a penny to trade at US28 cents per lb. Zinc held steady at US57 cents per lb.

Teck B-series shares suffered the worst weight loss among senior producers, shedding $1.55 to close at $27.75. Running a close second was Inco, which dropped $1.35 to close at $43.45. Falconbridge saw its share price drop 60 cents to $28.25. On a brighter note, Noranda was up a nickel to $29.65, whereas Rio Algom gained a dime to finish at $34.95.

In the junior market, joint-venture partners Ashton Mining of Canada and Pure Gold Resources recorded increases over the week. Ashton issues were up 154% — the highest percentage gain of all issues traded. It tacked on $2.65 to close at $4.35. Pure Gold gained 16 cents to close at 39 cents. The issue was the second-most traded, with 17.8 million shares crossing the floor.

The companies rode a wave of investor enthusiasm following the release, earlier in the trading period, of positive results from the Buffalo Hills diamond property in north-central Alberta. Preliminary caustic dissolution analyses on bulk-samples taken from one of three kimberlite pipes under examination showed a significant content of micro and macrodiamonds. In addition, geochemical analyses of indicator minerals in all three pipes confirmed the presence of G10 pyrope garnets and chromites, whose chromium and aluminum chemistry plots within the expected stability field for inclusions in diamonds.

Ashton is earning a 42.5% interest in the project, whereas Pure Gold can earn 15%.

The Canadian dollar lost some of the ground it gained last week against its American counterpart, falling 16 basis points. On April 30, the Loony had a noon rate of US71.58 cents. The dollar also lost some bite against the Deutschmark but fared well against the other major foreign currencies.